BUSINESS PROPOSALS

Business proposals are documents that attempt to persuade targeted clients
to buy a particular service or product. These documents, which are used in
academia and government as well as business and industry, may range from
relatively short (a few pages) proposals to "formal"
documents of 50 or more pages. Many business proposals—and
especially those proffered by startup businesses seeking to obtain new
clients and business—are unsolicited (those that are created at the
request of the prospective client are known as "request for
proposals"). Given the fact that many business proposals have not
been formally requested by the recipient, businesses that put these
documents together have to make sure that they create a final product that
will grab the attention of the prospective client in a positive way. As
Tom Sant wrote in
Small Business Reports,
"whether you're selling products, services, ideas or
projects, you need a proposal to persuade clients that whatever
you're selling is the best solution to their business problems. In
short, a proposal is a selling tool."

ELEMENTS OF THE BUSINESS PROPOSAL

Business proposals are sometimes lumped in the same category as
competitive bids. But other analysts point out that proposals—and
especially unsolicited proposals, whether aimed at convincing a publisher
to publish your new book idea or convincing an investor to take a look at
a potential new business site—are essentially designed to pique the
interest of the prospective client. For this reason, such proposals often
do not get into the nuts and bolts of compensation, time frame, and other
matters. Competitive bids, on the other hand, provide detailed information
on all aspects of the proposed business arrangement.

Standard elements of basic business proposals include the following
(although, depending on the degree of formality of the proposal, not all
parts are always necessary) :

Cover Letter—This should provide an over-view of your proposal as
well as an introduction, if necessary, in which you include a brief
synopsis of your company's background and qualifications.

Title Page—This part typically includes your name and the name of
your company, the name of the person or company to whom the proposal is
submitted, and the date of submission. "Some titles are one line
long, occasionally two," commented Herta A. Murphy and Herbert W.
Hildebrandt in
Effective Business Communications.
"Some even include a colon—followed by words to clarify
the thought. Clarity and comprehensiveness are dual criteria for a good
proposal title."

Table of Contents—While usually not necessary for shorter
proposals, these are sometimes used for big, formal proposals (such as
request for proposals).

Executive Summary—This is the portion of the proposal where you
make your case for a business arrangement. "This is the most
important part of your proposal," said Sant. "It's
the section that will be read by every decision maker. Make sure
it's easy to read. Avoid technical jargon and technical details.
Focus on organizational issues and benefits, and keep it short."

Body/Procedures Section—This is the section in which you place
technical details and explanations, as well as information on price,
implementation schedules, logistical and support issues, documentation,
and training. Legal experts note that if the proposal is accepted, it
can become a legally binding document. For this reason, and because of
the length of time that is usually necessary to produce this section,
writers of unsolicited proposals may wish to hold off on preparing this
section unless the targeted person or company expresses interest in the
basic proposal.

WRITING A SUCCESSFUL PROPOSAL

Writing a successful proposal requires both salesmanship and fundamental
communication skills. "Basically, proposals—like other
reports—should be factual, objective, logical, well
written," said Murphy and Hildebrandt. "They should also be
persuasive. All proposals should present facts honestly to justify the
requested expenditure to be paid by the reader's organization to
the writer's firm or to an individual for solving a problem or
altering a procedure." In addition, many business communication
experts counsel their clients to arrange their proposal in such a way as
to emphasize persuasive arguments at the beginning and the conclusion of
the proposal, which often are the most remembered sections of any
presentation.

Ultimately, however, it is commonly believed that the likelihood of
garnering new business via business proposals, whether solicited or not,
lies with anticipating the priorities of the targeted firm or individual.
As Colette Nassutti observed in
Outlook,
an essential ingredient of successful proposals is the proposal
writer's ability to understand the prospective client's
circumstances, requirements, and business
objectives. Sant agreed, pointing out that "a focus on cost is
advantageous if your client is experiencing a period of decline,"
while "advanced, automated solutions will appeal to growing
companies." Proposals aimed at companies that are well-known for
attention to quality, advertising image, or quick product development can
be structured accordingly as well.

Writing in the
Los Angeles Business Journal,
Sharon Berman noted that "Doing your homework and making the
required preparations can make all the difference. This is especially
important in light of the enormous time and effort required to craft a
professional proposal." In order to create proposals that address
the client's needs more directly and persuasively, Berman suggests
meeting with key decision-makers ahead of time and asking probing
questions to determine exactly what they are looking for. Sometimes a
prospective client may request a proposal as a way to gain leverage with
their current service providers, or they may be planning to change their
current operations and anticipate new or different needs. This type of
information can be invaluable in shaping the proposal.